Full Coverage Auto Insurance: Understanding Ohio's Unique Requirements

In Ohio, full-coverage auto insurance can mean a lot of different things. While there is no such thing as a full-coverage auto insurance policy in the state, the term is used to describe insurance that exceeds Ohio's legally required auto insurance coverage minimums. The minimum amount of Ohio auto insurance coverage is $25,000 for bodily injury per person, with a total maximum of $50,000 per incident, and $25,000 for damage to another person's property.

Ohio's minimum insurance requirements

In Ohio, drivers are required to carry a minimum level of liability insurance. The minimum coverage requirements are:

• $25,000 in bodily injury liability coverage per person
• $50,000 in bodily injury liability coverage per accident
• $25,000 in property damage liability coverage per accident

These requirements are in place to protect you and others on Ohio's roads. While purchasing this amount of coverage satisfies Ohio's legal requirements, it's important to consider that minimum insurance may not cover all damages if you are involved in a serious accident. For example, if multiple injuries occur, you could quickly see the cost exceed your policy limits for bodily injury liability. Minimum insurance also does not cover any damage to your vehicle if you cause the accident.

While liability insurance is the only coverage required by law, there are several other types of coverage that drivers can add to their policies for more protection. These include:

• Collision insurance: This coverage pays to repair vehicle damage after a covered accident, including accidents with stationary objects.
• Comprehensive insurance: Comprehensive insurance covers damage to your vehicle from non-accident situations, such as falling objects, fire, or theft.
• Gap insurance: This coverage is beneficial for drivers who lease or finance a new vehicle. If your car is totaled after a covered accident, gap insurance will pay the difference between the car's value and the balance remaining on your loan.
• Roadside assistance: Roadside assistance is a popular add-on that provides basic car repairs, towing, fuel delivery, lockout services, and more.
• Uninsured/underinsured motorist coverage: These coverages protect you in the event that an uninsured or underinsured driver causes an accident and is unable to pay for your damages or injuries.

The penalties for driving without insurance in Ohio are severe. For a first offense, the driver's license will be suspended until they can show proof of insurance, and they must pay a $40 reinstatement fee. For a second offense, the driver's license will be suspended for one year, and they must pay a $300 reinstatement fee. For a third offense and beyond, the driver's license will be suspended for two years, and they must pay a $600 reinstatement fee. Drivers who fail to surrender their license are charged a $50 fee, and all drivers caught driving without insurance are required to purchase an SR-22 certificate to demonstrate proof of insurance going forward.

Full coverage vs. minimum coverage

When it comes to auto insurance, there are two main types of coverage to choose from: full coverage and minimum coverage (also known as liability-only coverage). While the specific details of these policies may vary by state, here's a detailed comparison of the two types of coverage, focusing on the requirements and considerations for Ohio:

Definition and Cost

Full coverage auto insurance is not a standard policy but a combination of different auto insurance policies that exceed the state's legal minimum requirements. In Ohio, full coverage typically includes comprehensive, collision, and liability insurance, along with other optional coverages. The cost of full coverage in Ohio varies depending on factors such as age, driving history, and credit score. On average, full coverage costs around $1,660 per year or $138 per month.

On the other hand, minimum coverage, as the name suggests, only includes the state's legally required insurance coverage. In Ohio, the minimum coverage requirements include bodily injury liability coverage of $25,000 per person and $50,000 per accident, as well as property damage liability coverage of $25,000 per accident. Minimum coverage in Ohio is significantly cheaper than full coverage, with an average cost of $511 per year or $43 per month.

What's Covered

The main difference between full coverage and minimum coverage is the extent of protection offered. While minimum coverage only covers damages to others' vehicles and injuries to other people in an accident, full coverage extends beyond that. It includes liability coverage, which protects you financially if you injure someone or damage their property. Additionally, full coverage offers comprehensive and collision coverage, which means your own vehicle is also covered in case of accidents, natural disasters, theft, or vandalism.

When to Choose Each Type of Coverage

The decision between full coverage and minimum coverage depends on several factors. If you're leasing or financing your vehicle, full coverage is often required by lenders to protect their investment. Additionally, if you cannot afford to replace or repair your car in the event of an accident or non-collision incident, full coverage is a wise choice. It provides peace of mind and financial protection, ensuring you're not left with a hefty bill.

On the other hand, if you own an older vehicle or feel that you have sufficient financial means to cover potential damages, minimum coverage may be more suitable. It's important to remember that minimum coverage doesn't provide protection for your own vehicle, so consider your ability to cover repairs or replacement costs.

Pros and Cons

Full coverage offers more comprehensive protection, covering both your liabilities and damages to your own vehicle. It provides a higher level of financial security, especially in the event of an at-fault accident. However, it is more expensive than minimum coverage and may include some coverages that are not necessary for all drivers.

Minimum coverage, on the other hand, is the most affordable option, allowing you to meet the legal requirements without breaking the bank. However, it lacks protection for your own vehicle, and there may be policy limits. Additionally, your medical bills may not be covered by another person's liability policy if you only have minimum coverage.

Cheapest full-coverage insurance

When shopping for car insurance, you will come across the term "full-coverage insurance" quite a bit. However, this is not a type of policy by itself. Instead, it is a combination of auto insurance policies that exceed the minimum coverage required by law.

Full-coverage auto insurance in Ohio can include:

• Collision insurance: This covers the cost of repairing or replacing your vehicle when it is damaged in a collision with another vehicle or object, subject to a deductible.
• Comprehensive insurance: This covers damage to your car from non-collision incidents such as theft, fire, vandalism, glass breakage, and contact with animals.
• Uninsured/underinsured motorist coverage: This protects you when an uninsured or underinsured driver is at fault for an accident, covering property damage and bodily injury.
• Medical payments coverage: This covers your medical bills after an accident, providing reassurance that you won't have to spend your savings on hospital bills.
• Personal injury protection: This covers medical bills, lost wages, and death benefits.
• Rental car coverage: This helps pay for a rental car while your vehicle is being repaired.

The cheapest full-coverage insurance in Ohio is offered by Hastings Mutual, with an average rate of $720 per year, according to NerdWallet's September 2024 analysis. Grange Insurance also offers competitive rates, with full-coverage policies averaging $83 per month. Progressive provides the cheapest minimum-coverage insurance, with rates as low as $35 per month.

It's important to note that the cheapest option may not be the best fit for your needs. Consider factors such as customer service, convenience, and the specific coverages offered when choosing an insurance provider. Additionally, your rates may vary based on your age, driving record, credit score, and other factors.

Cheapest minimum-coverage insurance

When shopping for car insurance, it's a good idea to compare rates from multiple insurers to find the cheapest option. The cheapest minimum-coverage car insurance in Ohio is offered by USAA, with rates as low as $24 per month. Other affordable options for minimum-coverage insurance in Ohio include Erie, Nationwide, and Travelers.

The cost of car insurance in Ohio varies depending on factors such as age, driving history, and credit score. For example, teen drivers in Ohio typically pay much higher rates than older adults. Additionally, drivers with a recent speeding ticket, accident, or DUI on their record can expect their insurance rates to increase significantly.

It's worth noting that while minimum-coverage insurance may be tempting due to its lower cost, it may not provide sufficient protection in the event of a serious accident. To ensure adequate coverage, consider purchasing full-coverage insurance, which includes collision and comprehensive coverage in addition to the state-mandated liability insurance.

Additional coverage options

In Ohio, there is no state-mandated requirement for drivers to purchase additional coverage options beyond the minimum liability insurance. However, these additional coverage options can provide valuable protection in the event of an accident or other vehicle-related incidents. Here are some of the most common additional coverage options available to Ohio drivers:

• Collision Insurance: This coverage pays for repairs to your vehicle after an accident, regardless of who is at fault. It also covers accidents with stationary objects. While not required by law, collision insurance is often required by lenders if you finance or lease a vehicle.
• Comprehensive Insurance: Comprehensive insurance covers non-accident-related damage to your car, such as theft, fire, vandalism, or natural disasters. Like collision insurance, comprehensive coverage is usually required by lenders for financed or leased vehicles.
• Uninsured/Underinsured Motorist Coverage: This protects you if you are in an accident with a driver who has insufficient or no insurance. It covers medical expenses, lost wages, and repair costs. In Ohio, it is estimated that 13% of drivers are uninsured, so this coverage can be crucial.
• Medical Payments Coverage (MedPay): MedPay helps cover medical bills that your insurance company does not fully pay. It is important to note that MedPay can only be used for medical expenses resulting from a car accident.
• Roadside Assistance: Roadside assistance is a popular add-on that provides basic car repairs, towing, fuel delivery, lockout services, and more. It is typically available from most insurance companies.
• Gap Insurance: Gap insurance covers the difference between the value of your vehicle and the balance of your loan if your car is totaled or stolen. This coverage is especially beneficial for drivers who lease or finance a new vehicle.

While these additional coverage options may increase your insurance premiums, they can provide valuable financial protection in the event of an accident or other covered incident. It is important to carefully consider your needs and assess the risks associated with driving in Ohio to determine which additional coverage options are right for you.

Frequently asked questions